Fiscal Policy and changes in inflation environment

Citation:

Momi Dahan and Strawczynski, Michel . 1999. “Fiscal Policy And Changes In Inflation Environment”. In Inflation And Disinflation In Israel Edited By L. Leiderman, Pp. 450-491. Jerusalem: Bank of Israel.

Abstract:

This paper examines the relationship between fiscal policy and inflation in Israel in the period 1970-1996. We look at changes in the structural deficit and the public debt as main indicators for classifying the fiscal policy regimes. By designing uniform criteria for the whole period, we identify significant and persistent changes in fiscal policy. We find a high correlation between changes in the fiscal policy regime and changes in the inflation environment.
Last updated on 08/02/2023